Entree Gold Inc.

Entree Gold Inc.

March 23, 2005 08:30 ET

Entree Gold Inc.: Rigs Added to Copper Flats Drilling


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ENTREE GOLD INC.

TSX VENTURE SYMBOL: ETG

MARCH 23, 2005 - 08:30 ET

Entree Gold Inc.: Rigs Added to Copper Flats Drilling

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2005) - Entree
Gold Inc. (TSX VENTURE:ETG) ("Entree" or the "Company") reports that
Ivanhoe Mines Ltd. (TSX:IVN)(NYSE:IVN)(ASX:IVN) ("Ivanhoe") now has four
rigs drilling on the Copper Flats Zone of its Lookout Hill property,
Mongolia, along the geophysical trend which outlines the potential Hugo
Dummett extension.

Four deep drill holes are currently in progress on Copper Flats,
targeting the extension of the trend which includes the Hugo Dummett
North deposit. Drills are located approximately 50 meters, 300 meters,
750 meters, and 3 kilometers north of the joint Entree-Ivanhoe claim
boundary. The drill hole at the 300 meter mark replaces two holes
(previously announced February 15, 2005) that were forced to be
abandoned before reaching the projected target depth. The replacement
hole is collared approximately 450 meters east of the original two
collars. This new set-up is planned to include at least two holes and is
designed to test the potential Hugo Dummett extension at vertical depths
of approximately 950 and 1150 meters.

Separately, Ivanhoe has completed two drill holes (one on each side of
the property boundary) into the Eagle Zone chargeability anomaly (Copper
Flats hole announced on January 25, 2005). The holes were designed to
test this discrete anomaly, located approximately 2 kilometers to the
west of the potential Hugo Dummett extension. Entree and Ivanhoe
geologists are encouraged by the geology and mineral potential from
results to date and the Eagle Zone is slated to be tested by additional
drilling.

"The ramp-up in the drilling program along the projected Hugo Dummett
extension is a significant development for the project," said Greg
Crowe, President and CEO of Entree Gold. "Although the deep drilling
program is technically difficult and as slow as 30 meters per day, the
additional drill rigs that Ivanhoe has now committed should ensure
initial testing of the full 4 kilometer Hugo Dummett extension
chargeability anomaly in 2005. Areas with mineralized intervals will be
tested by tighter-spaced in-fill drilling. Taken together with our
independent, US$3.0 million exploration program, we anticipate an
exciting year of exploration news."

Exploration in Mongolia is under the supervision of Robert Cann, P.Geo.,
Entree's Exploration Manager and a qualified person as defined by
National Instrument 43-101. Mr. Cann is responsible for the preparation
of technical information in the Company's news releases. All rock
samples are prepared and analyzed by SGS Mongolia LLC of Ulaanbaatar,
Mongolia. Randomly selected pulps and all soil samples are submitted to
Acme Analytical Laboratories Ltd. of Vancouver, British Columbia for
check assaying and analytical work.

ABOUT ENTREE GOLD INC.

Entree Gold Inc. (www.entreegold.com) is an exploration stage junior
resource company engaged in the exploration of gold and copper
prospects. The Company is a large landholder in Mongolia's south Gobi
Desert, near the Chinese border. Entree maintains 100% royalty-free
interest in the 179,590 hectare Lookout Hill (Shivee Tolgoi) property
which completely surrounds Ivanhoe Mines Ltd.'s (Ivanhoe's) 8,500
hectare Turquoise Hill (Oyu Tolgoi) holdings. Ivanhoe has an earn-in
agreement with Entree whereby Ivanhoe can earn an interest in an area
covering approximately 22% (approximately 40,000 hectares) of Entree's
Lookout Hill property. Ivanhoe commenced drilling on the potential
northerly extension of the Hugo Dummett Deposit onto Lookout Hill in
February 2005. The Company is a Tier 1 listed company with its shares
trading on the TSX Venture Exchange under the symbol "ETG".

This news release contains forward-looking statements. Forward-looking
statements are statements which relate to future events. In some cases,
you can identify forward-looking statements by terminology such as
"may", "should", "expects", "plans", "anticipates", "believes",
"estimates", "predicts", "potential" or "continue" or the negative of
these terms or other comparable terminology. These statements are only
predictions and involve known and unknown risks, uncertainties and other
factors that may cause our or our industry's actual results, levels of
activity, performance or achievements to be materially different from
any future results, levels of activity, performance or achievements
expressed or implied by these forward-looking statements.
Forward-looking statements in this news release include those concerning
the Company's belief that the Hugo Dummett Deposit extends onto Lookout
Hill and that the potential results that may be obtained by the current
exploration programs being carried out in the Lookout Hill Property by
Ivanhoe and the Company are encouraging.

While these forward-looking statements, and any assumptions upon which
they are based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost
always vary, sometimes materially, from any estimates, predictions,
projections, assumptions or other future performance suggested herein.
Except as required by applicable law, including the securities laws of
the United States, the Company does not intend to update any of the
forward-looking statements to conform these statements to actual
results. Readers are referred to the sections entitled "Risk Factors" in
the Company's periodic filings with the British Columbia Securities
Commission, which can be viewed at www.SEDAR.com, and with the United
States Securities and Exchange Commission, which can be viewed at
www.SEC.gov.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Primoris Group
    Investor Relations
    866-368-7330
    ETG@primorisgroup.com
    www.entreegold.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.